Who has retail power?
Porter’s 5 Forces model helps to explain market influences as retail undergoes tremendous upheaval.
To manage fierce competition, companies can boost their bargaining power if they:
- Differentiate their offerings
- Reflect in-demand consumer trends
- Invest in e-commerce for omnichannel agility
Also, as tech-driven supply chains grow in power, companies are establishing strategic partnerships to delight consumers with convenience and quality.
UPDATE: August 30, 2021
Amid market volatility, power continues to shift across global retail players.
This piece from March can be amended with market factors growing in influence like:
BUYERS:
To increase supply chain control and access to products, Walmart chartered ships and Canadian Tire invested in a shipping port
SUPPLIERS:
Brands are investing in digital ads for marketing muscle as e-commerce gets more crowded
NEW ENTRANTS:
TikTok deserves a mention, as tech giants desire a piece of the e-commerce action
RIVALRY:
As workers embrace the Great Resignation, Walmart and Target invest in employees’ college degrees to navigate the labor shortage
Which force do you think is most powerful in retail today?
Related:
2021 Retail Strategy Trends
2021 Retail PEST Analysis
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